Congress has created different categories of tribes, some with the right to acquire new
trust lands and others without, lawyers from the state of Rhode Island told
a federal appeals court on Tuesday.

Tribes in Western states fall into the first category because they were
federally recognized when the Indian Reorganization Act was passed in 1934, the
court was told.
That means they can follow the land-into-trust process that was created by the law,
the attorneys said.

"The IRA was designed to eliminate the allotment policy,"
Joseph S. Larisa Jr., a lawyer for the town of Charlestown, told the 1st
Circuit Court of Appeals.
The land-into-trust process helps Western tribes recover their lost
acreage, he said.

But others fall into a different category, the attorneys argued.
By settling a land claim for an 1,800-acre reservation,
the Narragansett Tribe gave up its right to acquire any
new trust properties, they said.

"The experience in Rhode Island is significantly different from the
Western states," assistant attorney general
Neal Kelly said. "We believe the land in Rhode Island is
very different from other land in the United States."

That sweeping characterization kept six judges of the court
occupied during a 90-minute hearing in Boston, Massachusetts, yesterday
afternoon.
They tried to decide whether the use of the word "now" in the IRA prevents
tribes who weren't recognized in 1934 from following the land-into-trust
process.

The IRA's definition of Indian includes the phrase "any recognized Indian tribe now under
federal jurisdiction."
"By anchoring the date of 1934, you are arguing that
Congress created two categories of tribes?" asked Judge Juan R. Torruella.

Yes, replied Larisa, who said the Interior Department cannot take
land into trust for tribes that weren't recognized or weren't
under federal supervision as of that date.
"This tribe is not a tribe under the 1934 Indian Reorganization
Act," he said in reference to the Narragansetts.

That statement drew objections from Elizabeth Peterson,
a government attorney who is representing Interior
Secretary Dirk Kempthorne in the case.
She said the Interior Department has never interpreted the word
"now" to prevent tribes who were recognized after 1934 from acquiring trust lands.

Ian Gershengorn, a Washington, D.C., attorney who represents
the National Congress of American Indians and dozens of other tribes
as friends of the court, said it was "absurd" to argue that
newly recognized tribes can't benefit from the land-into-trust process.
"It makes a mockery of the whole acknowledgment process that
the tribes have gone through," he said.

At least three of the judges on the court appeared to treat the state's
argument with skepticism. They included Chief Judge Michael Boudin,
who questioned why Congress would want to create different categories
of tribes.

"If the Indians have title and there is no prohibition, then the
federal government can take it into trust," said Boudin.

The tribe wants to use 31 acres in the town of Charlestown
to build housing for low-income
and elderly members. The land was purchased with Department of Housing and Urban
Development funds and can only be
used for that purpose.

But one judge said the state's real concerns had nothing to do
with housing.
"They're afraid of a casino or a smokeshop or something else
like that," said Judge Sandra L. Lynch.

Under a different case that was resolved by the same six judges, the tribe
was barred from operating a tax-free smokeshop on its settlement lands.
By a 4-2 vote, the court said the tribe accepted state jurisdiction on the reservation
as part of its "bargain" with Rhode Island. Torruella and Judge Kermit V. Lipez
dissented.

Peterson acknowledged that state laws won't apply on the 31 acres
because they are located outside the settlement reservation.
"This tribe is entitled to recognition as a sovereign entity"
and all the rights that go with it, she told the court.

"That completely erodes the bargain," responded Judge Bruce M. Selya,
who appeared to be more sympathetic to the state.

Another member of the panel, Judge Jeffrey R. Howard,
remained silent during the entire hearing. He previously
authored a dissent that said state laws should apply
on the newly acquired land.

The case began when the Bureau of Indian Affairs agreed to take the land
into trust. In September 2003, a federal judge sided with the BIA and the tribe, a ruling
that was upheld on appeal by a panel of three judges of the 1st Circuit in February 2005.

Unhappy with the outcome amid the battle over the tax-free cigarettes,
the state asked for a rehearing.
By a 2-1 vote, the three judges again sided with the BIA and the tribe,
though Howard dissented in the September 2005 ruling.

Once again, the state sought a rehearing before an en banc
panel of the court. The request went unanswered for nearly a year
when the 1st Circuit last month suddenly scheduled oral arguments.

Whatever the outcome of the case, it is likely to be appealed to the
U.S. Supreme Court. Last October, the justices refused to hear
two similar land-into-trust disputes that originated in Western states.

All three cases involved a challenge to the constitutionality of the IRA.
States have claimed the land-into-trust provisions are an illegal delegation of power to
the Interior Department.

The Narragansett case is more complex due to the existence of
a special act of Congress that settled the tribe's land claim.
In the other two cases -- one from the 8th Circuit and the other from
the 10th Circuit -- there were no other laws to reconcile and the tribes affected
had been federally recognized as of 1934.

A similar case arose in the 2nd Circuit involving the Mashantucket Pequot Tribal
Nation. The court ruled there was no prohibition on new trust land acquisitions
even though the tribe wasn't recently until 1984 and falls under a land claim
settlement act.

Rhode Island says the Pequot case, and others like it, differ from the Narragansett one because
Congress was more specific with respect to the lands that could be taken
into trust. The state says Congress extinguished all forms of tribal rights
when it settled the Narragansett claim.